CD&R sells further B&M stake for £384m

The placing comprises 120 million ordinary shares valued at 320 pence each, giving the company a market cap of £3.2bn.

Following completion of the sale, which will take place on 6 February, the US GP will retain a 17.4% stake in the business.

As a result of CD&R's partial exit, B&M's free float has now passed the 50% mark, making it eligible for inclusion in the FTSE indices.

Merrill Lynch and Deutsche Bank acted as joint bookrunners in the placing.

B&M launched its IPO on the London Stock Exchange in June 2014 with a market cap of £2.7bn. The offer raised a total of £1.19bn with an over-allotment of 40 million shares exercised in full.

Slightly more than £1bn of the IPO's proceeds were reaped by shareholders, with only £75m taken by B&M. Alongside CD&R's VIII fund, the Arora family also sold shares in the offering.

Previous funding
CD&R acquired B&M at the end of 2012 in a deal rumoured to sit around the £950m mark. The firm bought its stake from the Arora family though a Rothschild-run auction process.

Company
Founded in 1976 and headquartered in Liverpool, B&M operates a range of discount stores in the north of England, Scotland, Northern Ireland and Wales.

People
Simon Arora is CEO of B&M.

Advisers
Equity - Lazard & Co (Corporate finance).

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